1. Field of the Invention
This invention relates to the “kitting” of Smart Cards and more specifically to a method of and equipment for packaging the Smart Cards with a film that is preprinted with the licensing agreement.
2. Description of the Related Art
Smart Cards are being used as a means for securely storing and communicating large amounts of personalized data in essentially a credit card. Smart Cards are being used for bank and credit services, medical history, transportation, and as access cards to enable secured devices or networks. A smart card is embedded with a module that contains an integrated circuit chip. The module is configured to interface with some type of a card reader. A “non-contact” card interfaces using, for example, IR. A “contact” card includes contact pads that would mate with pins on the card reader. The Smart Cards are relatively expensive and fragile. The IC chip and module are sensitive to bending, scratching and static electricity. The replacement cost due to damage caused during packaging and distribution is high.
In many of the applications contemplated for Smart Cards, it is desirable to package the Smart Card with some form of a Licensing Agreement, typically known as a “shrink wrap license”. By opening the package and using the Smart Card, the user accepts the terms of the license, which may include terms of use, payment terms, limitation on liability, acknowledgement of intellectual property rights, etc. To be valid the licenses should be prominent, readable, complete and clearly associated with the acceptance and use of the Smart Card.
One way of packaging individual Smart Cards with a shrink wrap license agreement is to print the licensing agreement on the front of a standard #10 envelope, attach the Smart Card to a carrier of approximately the same size as the envelope and seal the Smart Card inside the envelope. In the case of a DirecTV access card, the back of the envelope is provided with a window so that a bar code on the card may be read during handling and distribution without opening the envelop. These envelopes are typically sent in bulk to distributors, OEMs, etc. that incorporate them into other products and services and then distribute them to customers. For daily mailings direct to the customer, either the printed envelop can be placed into, for example, a larger FedEx envelope or the licensing agreement can be printed on the carrier and tape that hold the card and packaged into a #10 envelope using an industry standard mailing machine.
A #10 envelop is much larger than a typical Smart Card and thus more difficult and expensive to store and transport in large volumes. This size of envelop is used for two reasons. First, the envelopes and the equipment for “kitting” the Smart Card into the envelope is standard equipment for vendors. Second, a typical licensing agreement in a readable font size will not fit on the front of card sized envelopes.
By way of example, DIRECTV® provides access cards that are encoded with certain identification, service and security information for use with their integrated receiver decoder (IRD) set-top boxes and digital video recorders (DVRs) to provide secure satellite television services. DIRECTV requires that every Smart Card it distributes to IRD manufacturers and dealers be accompanied by a licensing agreement to provide protection for the proprietary and sensitive materials incorporated into the software in the Smart Card. The access cards are expensive, fragile and produced in the tens to hundreds of thousands for typical applications and even into the millions for DIRECTV access cards.
Currently, DIRECTV sends crates full of access cards to an outside vendor for kitting. The vendor mounts each card on an insert and seals it into a #10 envelope with a preprinted licensing agreement on the front. A window on the back of the envelope provides access to read the bar code on the access card. The vendor then recrates the sleeves of 500 and returns them to DIRECTV where they are stored in a large warehouse. Kitted Smart Cards in sleeves are placed in a shipping crate with many other boxes/sleeves and shipped to an IRD/DVR OEM. The OEM reads the bar code of the access card and marries it to a particular IRD/DVR and keeps them in stock. The OEM will then distribute the IRD/DVR with its unique access card to retailers or professional installers. Eventually, the system is installed in a customer's home at which time the user breaks the seal on the envelope to insert the card into the IRD/DVR to activate the system. The act of breaking the seal signifies the user's acceptance of the licensing agreement.
There is a large and growing need in the industry to find a more cost effective technique for “kitting” smart cards with a shrink wrap license that minimizes damage to the cards and reduces the cost of storing and transporting the cards.